- GIC to acquire a significant minority interest in Biotrop Soluções Biológicas, a portfolio company of Aqua Capital's Fund II, which remains the majority owner
- Biotrop is a leading company focused on the development and production of high-tech biological agricultural inputs, a critical vertical for promoting sustainability in the agribusiness sector.
- Transaction capitalizes company high-growth plans in the US and Latin America, on the back of its technical expertise and commercial backbone
Private equity manager Aqua Capital and GIC, Singapore's sovereign wealth fund, announced on Monday that they have entered into a binding agreement for the acquisition by GIC of a significant minority stake in Biotrop Soluções Biológicas (Biotrop), a leading Brazilian biological ag inputs company majority owned by Aqua Capital's Fund II.
The final close of the transaction is still subject to the approval of the Brazilian anti-trust authority (CADE) and is expected to take place within 60 days.
Biotrop is a company focused on developing and producing high-tech biological agricultural inputs, a critical vertical for promoting sustainability and increasing productivity in agribusiness. The company was founded by Aqua Capital in 2018, to bring to life its vision in the biological ag inputs market. Biotrop later performed a transformational acquisition of Total Biotecnologia to accelerate its development and to consolidate itself as a high-growth leader in the Brazilian market. The company has almost doubled sales over the last two years, while improving gross and Ebitda margins despite investments to promote future growth.
Since the acquisition of Total Biotecnologia, Biotrop has grown organically more than 35% p.a both in revenues and Ebitda despite ongoing economic volatility impacting the Brazilian market and lockdown measures restricting aggressive sales growth plans. In 2020, the company made major progress structuring the base for long-term growth, accelerating its R&D program and further optimizing its industrial production, S&OP, and commercial structure.
"Biotrop's expansion plan throughout the Americas continues on track, consolidating its leadership position in Brazil, while strengthening its presence in other key markets like Argentina and Paraguay and preparing its entrance into other South American markets and the US. The incorporation of a well-connected, global investor such as a GIC is a key step towards accelerating this growth agenda," said Tomás Romero, partner at Aqua Capital.
"Counting on an investor of the caliber of GIC highlights the value and growth potential of Biotrop and recognizes the continued hard work and commitment of our team," said Antonio Carlos Zem, CEO of Biotrop. "Serving our customers with innovative and sustainable solutions remains our top priority."
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